Political killing and Shiite resignations increased polarisation and brought government close to collapse. Pierre Gemayel, Phalange politician and industry minister, became fifth anti-Syrian Lebanese politician to be killed in 2 years 21 November. Syria denied involvement. Mass funeral rally held 23 November and 2-day national strike 24/25 November. Ruling pro-Western March 14 coalition increasingly embattled after 6 Shiite cabinet members, including 2 Hizbollah, 3 Amal, 1 pro-Lahoud, resigned after coalition insisted on formal approval of UN tribunal on February 2005 Hariri killing. Removal of 2 more cabinet members would make two-thirds quorum impossible. Tribunal approved by cabinet 25 November but President Lahoud refused to give final approval without Shiite vote and called cabinet unconstitutional. Hizbollah leader Hassan Nasrallah stated intention to bring down Siniora government unless national unity formula restored. Military on alert as Nasrallah called for mass “sit-in” protest 1 December in centre of Beirut. Political crisis amplified by sporadic riots and Sunni-Shiite clashes.

Turkey sent almost 500 soldiers and naval forces to join UNIFIL peacekeepers monitoring ceasefire in south. PM Fouad Siniora dismissed peace overtures by Israeli PM Ehud Olmert, saying Lebanon would be last Arab state to sign deal with Israel. Parliament speaker Nabih Berri called for talks among rival groups to start month-end and focus on forming national unity government, drafting new elections law and confronting country's mounting national debt. Despite previous denials Israel confirmed use of phosphorus shells during war against Hizbollah.

Hizbollah held “victory” rally 22 September. Leader Hassan Nasrallah declared group still possessed over 20,000 rockets; would not immediately disarm but does “not want to keep the weapons forever”. Nasrallah said would release 2 Israeli soldiers, captured in 12 July raid that sparked conflict, if Lebanese militant Samir Qantar plus another, held by Israel for 27 years, also freed. Israeli troop withdrawal from south reportedly completed 1 October. Lebanese troops deployed to Israeli border for first time in 4 decades as required by UNSC resolution 1701. German government approved deployment of 2,400 navy personnel to patrol coast. Turkey and Qatar agreed to send troops to enhanced UNIFIL. UN and Lebanese army experts continued to remove unexploded Israeli ordnance from South Lebanon; investigation opened over use of cluster bombs. Official Israeli army inquiry concluded 25 July bombing of UN observation post and killing of 4 observers result of “tragic error”: UN stated Israel obstructed UN investigation. Head of UN enquiry into February 2005 killing of former PM Hariri reported progress but called for continued international support in briefing to UN Security Council 29 September. Intelligence officer and former investigator into Hariri killing wounded in 5 September attack.

Fragile UN-brokered ceasefire commenced 14 August following 34 days of war between Israel and Hizbollah: approximately 1,000 Lebanese and 159 Israelis killed. Hizbollah leader Sheikh Hassan Nasrallah claimed “historic victory”, while Israeli PM Olmert said ceasefire agreement eliminated Hizbollah’s “state within a state”. Amid public criticism, Israeli army chief admitted failures in logistics, operations and command. UNSC Resolution 1701, which led to ceasefire, calls for Hizbollah to move north of Litani river to allow Lebanese army and strengthened UN force (UNIFIL) of 15,000 to deploy to southern Lebanon. Slow response from EU nations over troop contributions reflected concern about UN force’s mandate and rules of engagement, particularly relating to disarmament of Hizbollah. After initial offer of only 200 additional troops (to existing 200 in UNIFIL) France announced would deploy total of 2,000; Italy pledged further 3,000. Israel said would maintain sea and air blockade until full UN force deployed. UNSG Annan embarked on 11-day tour of region to seek compliance with resolution 1701. U.S. $940 million pledged by international donors at Stockholm conference to help rebuild after what PM Sinoira called, an “unjustified war”.

Full scale conflict erupted following brazen cross-border raid by Lebanon-based Hizbollah 12 July abducting 2 and killing 8 soldiers in Israel, with over 750 Lebanese and 51 Israelis now dead, more than half a million Lebanese civilians displaced, and real risk of further escalation and destabilisation. Israel responded to abductions with sea, land and air blockade, attacks on Hizbollah positions in south Lebanon and country-wide bombing of infrastructure. Hizbollah replied with indiscriminate rocket attacks into northern Israel, killing civilians in Haifa, Tiberias, Afula and Nazareth. U.S. and UK claimed Syrian and Iranian support for Hizbollah and backed Israeli actions, while rest of international community criticised Israeli “disproportionate” use of force and called for ceasefire. Despite repeated advance warnings to IDF, 4 UN observers killed by Israeli air strike on their post in town of Khiam 25 July. Israeli PM Olmert initially declared offensive to continue until soldiers freed, Hizbollah disarmed and Lebanese army in control of south, but after hundreds of Lebanese civilians killed, including more than 54 in 30 July bombardment of Qana, and 51 Israeli deaths, including 18 civilians, Israel publicly mooted international force in southern Lebanon. After refusing to support call for immediate ceasefire at 26 July Rome summit, U.S. Sec. State Rice stated intention to lobby for UNSC resolution for “urgent ceasefire, political principles that provide for a long-term settlement and the authorisation of an international force to support the Lebanese army in keeping the peace”. UN request 30 July for 3-day “aid truce” rejected by Israel. Bombing pause, agreed by Israel after Qana devastation, not sustained. Serious risk of further escalation, with Israel mobilising 30,000 reserves and cabinet unanimously agreeing 31 July to widen ground offensive, and Hizbollah leader Hassan Nasrallah saying ready to move attacks further south beyond Haifa; claims made that Hizbollah possesses longer-range ballistic missiles capable of reaching Tel Aviv.

Head of UN investigation into murder of former PM Hariri announced progress and “potential links” between leader’s murder and assassination of 14 other Lebanese political figures. UN Security Council agreed to extend commission for additional year and authorised investigation into related attacks. National dialogue resumed 29 June.

Worst cross-border fighting in 6 years erupted 28 May after rockets fired into Israel in apparent response to killing of Islamic Jihad group leader in south. Israeli air strikes targeted Popular Front for the Liberation of Palestine camps, leading to exchange of artillery fire, and border skirmishes with Hizbollah: 3 guerrillas reportedly killed before truce brokered by UN. Political leaders held seventh round of “national dialogue” talks 16 May but failed to find consensus on future of pro- Syrian President Lahoud or disarmament of Hizbollah: talks to continue 8 June. Rival leaders’ March pledge to peacefully disarm guerrillas outside camps within 6 months yet to be implemented. Lebanese soldier killed in skirmish with pro- Syrian Palestinian guerrillas 17 May. UN Security Council called for disbandment of all militias inside Lebanon.

Debate continued over divisive issues: fate of pro- Syrian President Lahoud and disarmament of Hizbollah. Political leaders failed to reach agreement in talks aimed at ending political crisis; to resume discussions 16 May. PM Siniora, in visit to Washington, linked disarmament of Hizbollah to Israeli withdrawal from disputed Shebaa Farms area. Lebanese authorities arrested 9 Sunnis suspected of planning assassination of Hizbollah leader Sayyed Hassan Nasrallah.

Main political leaders met 14 March to resolve key issues: agreed on removing weapons from Palestinian factions outside refugee camps, and called for full diplomatic ties with Syria. Talks suspended 27 March with no agreement on ending President Lahoud’s term or Hizbollah disarmament. Lahoud called for early legislative elections, saying would not resign and Hizbollah should keep arms. UN investigators presenting third report into assassination of ex-PM Hariri stated better cooperation from Syria helping investigations. Syrian President Assad agreed to meet investigators in April and did not rule out handing over suspects to international courts. UNSC resolution called for UNSG Annan to begin talks with Lebanon government on establishment of international tribunal.

First anniversary of assassination of former PM Rafik Hariri marked 14 February: son and parliament majority leader Saad Hariri branded President Lahoud agent of Syria during mass rally. Major political parties continued efforts to remove Lahoud. 5 pro-Syrian ministers ended their boycott of government after PM characterised Hizbollah guerrillas as national resistance fighters and not militias, allowing them to retain arms. Israeli aircraft and artillery attacked suspected Hizbollah positions in south 3 February after guerrillas attacked military post in border Shebaa Farms area, in retaliation for Israeli troop shooting of teenager inside Lebanese territory. Protests against Danish cartoons of Prophet Mohammed led to burning of Denmark’s Beirut consulate, accidental death of 1 protester and resignation of Interior Minister Hassan Sabei.